Accessing and Creating Equity Capital Through the Power of Place Based Data: Drugwar.com

TO: THE SOLARI ACTION NETWORK

RE: SOLARIS: ACCESSING AND CREATING EQUITY CAPITAL THROUGH THE POWER OF PLACE BASED DATA

DATE: JANUARY 31, 2002

When I was a little girl, the Solari Index was 100% and the Dow Jones was 500.

Now the Solari Index is very low. The Dow is very high, albeit falling.

Rumors --- and hard evidence-- swirl that the US Treasury, the NY Fed member banks and large corporations are cooking the books and trillions of dollars, gold and inventory are missing from the federal government. Something does not make sense. Sounds like financial hijackers have hijacked the financial system.

The question is: What can we can do to get off the titanic and start building arks?

One thing we can do is to invent a solari for our community.

We are getting more and more inquiries expressing interest in inventing a solari and your own Community Wizard tool to develop neighborhood financial statements and ways of estimating and polling the Solari Index for your community.

We are also hearing interest in adapting the Solari stock plan for small or new businesses. And every day we meet more people who are "voting with their resources" by only purchasing, depositing and investing with folks who are running honest and transparent operations. Just as important they are only buying and paying attention to media that tells the truth about "how the money works." It's a solaris job to help busy people like you do that.

Here are some of the current links that provide useful background. Starting a solari is a "Nike" thing. Just do it!

Best, Catherine Austin Fitts
Solari

WHAT IS A SOLARI?

A solari is a for profit community databank that collects and circulates knowledge on "how the money works" in the place so that members of the community can continuously reengineer government and other investment to ensure that resource use (whether of time, money, or anything else you and your neighbors consider a resource) is optimal for the your safety and well being. A solari creates and circulates the equivalent of Community Wizard type-tools and neighborhood financial statements" as well as tracks the Solari Index.

WHAT IS THE SOLARI INDEX?

The Solari Index is an index expressed numerically as a %. The number represents the % of people within a solari's boundaries that believe a child is free at any time of day or night before bedtime to leave their home and go to the nearest place to buy a popsicle and come home alone safely. For example, when I was a little girl the Solari Index in my neighborhood was 100%. Today, I believe it is 0%.

WHO CAN START A SOLARI?

Anyone can start a solari and call it one so long as it fits the definition:

http://www.solari.com/solari/index.html

As long as you fit the definitions, you are a solari and free to call yourself one. If you want to know more on our intentions to build the network after we get the current lynch mob off our tail, see:

http://www.solari.com/trust/index.html
http://www.solari.com/action/index.html

THE SOLARI STOCK PLAN

A solari is a private legal entity in which equity is divided between Solari A shares which are voting (governance control) and Solari B non-voting shares (financial participation)---- called Solari A's and B's. A share of stock in a solari is also referred to as a solari.

The Solari A's must be owned and controlled by people who live within the place based boundaries of the community.

The Solari B's solaris may be owned by whomever the A solariholders chose to market them to.

The Solari stock plan envisions tools that will help us:

-- access "hot money" without jeopardizing governance by giving voting power to investors and financial institutions who engage in financial fraud and corrupt activities;

---"buy" ourselves out of debt and tax slavery: Solari A's and B's will create ways for communities to organize debt to equity swaps to reengineer unserviceable levels of both municipal and government debt as well as defaulted federal credit and consumer credit card, auto, mortgage, home loan and other debt related to people and assets in a solari's service area.

WHY START A SOLARI?

A solari is the fundamental information infrastructure that a community needs to

(i) reengineer current investment,
(ii) to raise equity capital to incubate small business or to
(iii) recapitalize current businesses and real estate.

This includes creating the capacity to create equity securities to use for debt for equity swaps to relieve the community of the tax and/or debt service burden associated with
(i) municipal and other government debt,
(ii) defaulted federal and other credit and assets, such as FHA and VA mortgages, and
(iii) defaulted consumer debt and mortgages.

Once a solari is in place, there are an infinite number of ways that affiliated vehicles also using the solari stock plan can be created ---from REITS to mutual funds---to raise equity and other capital markets capital for the neighborhood and its business.

Once many solaris are in place, we will also have the infrastructure we need to start "voting with our money." This means we will have the knowledge available in easy and useful, even entertaining ways, that gives us the power to reengineer our purchases, our deposits, our investments and our time and attention away from organizations who do not tell us the truth or do not provide transparent financials and operations that we can trust.

Starting a solari is your community is step one to capturing all sorts of hidden economic value. Each community needs a trustworthy knowledge infrastructure before we can reengineer government investment, incubate new businesses or enhance the back off power of our current businesses to integrate new technology into our day day processes from the consumer point of view or simply back corruption and narcotics trafficking and financial fraud out of our neighborhood.

Starting solaris across America is step one to unleashing the real productivity possibilities of new technology. Solaris can help those of us who do not believe in cooking the books get together and dig us out of our current financial mess. We do this getting control of the knowledge that we need to make sure that local resources are properly managed and we have the know how to create more.

There are 63,000 neighborhoods in America, and many many more globally. Each place is unique and special. What creates entrepreneurial opportunity to improve our physical, financial, environmental health is unique to each place. What is the same everywhere is that what needs to happen is a new process and incentive system---which is solari---to increase our learning speeds about how to do move the Solari Index back up to 100% and that encourages us to do so.

Think of a solari as something that helps dummies like me get smart. "Trading Solaris --- Neighborhood Know-How For Dummies."

MORE ON WHAT A SOLARI CAN DO AND SOLARI A's AND B's

I am in the process of writing an article to be published in SRA Quarterly to explain the solari model to investors. Until that time, some of the old writings are useful to help understand some the solari concepts. They are a bit out of date, but still useful to help understand the notion of building and financing learning communities.

Here is a backcasting (as opposed to a forecasting, you pretend you are in the future and look back) we wrote several years ago on what a solari that was also financing the equity in DuPont Circle would feel and look like. This was report to shareholders:

http://www.solari.com/trust/Popsicle%20Culture.PDF (need Adobe Acrobat)

I wrote a letter to David Broder in 1998 trying to explain why circulating data on how the money worked in your place was so important:

http://www.solari.com/trust/databanks.html

Part of the challenge of explaining how we might finance communities with equity, is that many people do not understand how companies and assets are valued in the stock market and how to create capital gains from the entrepreneurial process. This article on "Pop" was written for those in community development who knew nothing about how organizations, assets and profits are valued in the equity markets. It may help:

http://www.solari.com/trust/databanks.html

When we were still looking at doing databanks and raising capital in one integrated entity ---which some may still prefer to do---we did a simple design book on how this might work. Here it is:

http://www.solari.com/trust/SolariStockCorps.PDF (need Adobe Acrobat)

SOLARI RISK MANAGEMENT

As most of you know, I have put my plans to build solaris on hold since late 1997 to grapple with the various risk issues created by the fact that our federal treasury and enforcement establishment has been hijacked by a criminal syndicate. I believe I am almost through with the risk issues so that we can go back to pushing drug dealers out of our communities without getting attached by the Department of Justice who has the full support of "all the money in the world"

Here is one of the competition between those trying to get the Solari Index up to 100% in a community and those making money on its going down.

http://www.solari.com/trust/CIDandCIA.html

Part of the challenge of weaning ourselves from organized crime is that the enforcement business that fails to stop it is a big job program. Prisons, for example:

http://www.solari.com/trust/PrisonMemo.html

Here are the other links for our articles about some of the most expensive risk issues associated with prototyping and developing the Solari model on scale. This includes the story of how our tool, Community Wizard, was destroyed by DOJ. This time, 63,000 neighborhoods will create 63,000 community wizards and it will be too out of control for DOJ to destroy!

Narco Dollars for Dummies:

http://www.narconews.com/narcodollars1.html
http://www.narconews.com/narcodollars2.html
http://www.narconews.com/narcodollars3.html

The Myth of the Rule of Law: The Destruction of Hamilton Securities:

http://www.user1.netcarrier.com/~aahpat/q301.pdf (need Acrobat Reader)

A Collection of Essays and Articles by Fitts:

http://www.solari.com/gideon/articles/index.html

Transcript of Catherine Austin Fitts visit to Drug SenseForum:

http://www.mapinc.org/tlcnews/v01/n2024/a03.htm?203

Transcript of Catherine Austin Fitts visit to NY Times Drug Forum (December 2001):

http://www.nytimes.com/2001/12/11/national/05DPTRAN.html?searchpv=past7days

Transcript of Catherine Austin Fitts panel participation in NY Times Drug Forum (January 2002):

http://www.nytimes.com/2002/01/10/readersopinions/07DPTRAN.html